What is a fixed-term contract?
A fixed-term contract ends on a set date or event; since 2023 there are limits of generally no more than two years or two consecutive contracts.
A fixed-term contract is an employment contract that ends on a specified date or when a specific task or season finishes. The employee is engaged for a set period rather than on an ongoing basis.
Since the limits commenced in December 2023, an employer generally cannot engage an employee on a fixed-term contract for more than 2 years (including extensions), or use more than 2 consecutive fixed-term contracts for the same role. Several exceptions apply — such as specialised skills, training arrangements, high-income employees, and government-funded positions. Employers must also give the employee a Fixed Term Contract Information Statement.
Key facts
- •A fixed-term contract ends on a set date, or when a task or season is completed
- •Limits commenced in December 2023: generally no more than 2 years or 2 consecutive contracts
- •Exceptions exist for specialised skills, training, high-income earners, and certain funded roles
- •Employers must give a Fixed Term Contract Information Statement from the Fair Work Ombudsman
- •A prohibited fixed-term term has no effect, and the contract may become ongoing employment
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Can my employer keep renewing my fixed-term contract?
Generally no. Since the 2023 limits, an employer usually cannot use more than 2 consecutive fixed-term contracts, or a contract running longer than 2 years, for the same role — unless a specific exception applies.
What happens if a fixed-term contract breaches the rules?
The term that limits the contract to a fixed period has no effect, so the employment can continue as ongoing. The rest of the contract still stands, and disputes can be raised with the Fair Work Commission.
FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is general information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.